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May 10, 2007
Medallion Financial Corp. Reports 2007 First Quarter Results
- Earnings per share increases 110% to $0.21 per share
- Total managed assets reach record highs
- Credit quality remains excellent
- Corporate NYC medallion prices reach $550,000
- Dividend increased 19% from 2006 first quarter to $0.19 per share
Charts
- Consolidated Statements of Operation (Unaudited)
- Consolidated Balance Sheets
NEW YORK, NY - May 10, 2007 -- Medallion Financial Corp. (NASDAQ:TAXI), a specialty finance company with a leading position servicing the taxicab industry and other niche markets, announced that earnings, or net increase in net assets resulting from operations, increased to $3,780,000 or $0.21 per diluted common share for the 2007 first quarter, up from $1,787,000 or $0.10 per diluted common share for the 2006 first quarter.
Medallion's on balance sheet taxicab medallion loan portfolio increased 5% to $444,000,000, up from $422,000,000 a year ago. The on balance sheet commercial loan portfolio increased 3% to $91,000,000, up from $89,000,000 a year ago. Including Medallion Bank, our unconsolidated wholly-owned portfolio investment, the managed medallion loan portfolio increased 7% to $531,000,000, up from $498,000,000 a year ago. The managed commercial loan portfolio increased 3% to $151,000,000, up from $147,000,000 a year ago. In addition, Medallion Bank's consumer loan portfolio increased 31% to $118,000,000, up from $90,000,000 a year ago. Total assets under management increased 11% to $940,000,000, up from $850,000,000 a year ago. Managed medallion, commercial, and consumer loans, and total assets were all record highs for us.
Andrew Murstein, President of Medallion stated, "We are very pleased with our continuing trends of increased growth and profitability. During this quarter, New York City medallion prices continued to rise. Since late 2001, corporate medallion values have increased from $195,000 per medallion to $550,000 today. The Mayor of NYC's proposal to implement a new tax for commuter cars entering midtown Manhattan could also have a positive impact on the industry."
Larry Hall, CFO stated, "During the quarter, continued growth for Medallion allowed us to hit record levels for all of our loan portfolios, with over 11,000 lending relationships in our managed portfolio. The yields on our loan portfolio increased, even in this interest rate environment. In addition, we continue to utilize Medallion Bank, which has our lowest cost of funds, to fund much of our growth. As a result, since it is not consolidated with us, we reflect its contributions as a valuation adjustment below the line. The bank is also able to retain its earnings for future growth since it is not an investment company. Our loan quality continues to remain strong, and is one of the hallmarks of Medallion. On a managed basis, including Medallion Bank, delinquent loans 90 days or more past due on the medallion portfolio decreased to 0.7% from 0.9% a year ago, commercial loans decreased to 0.8% from 1.3% a year ago, and consumer loans remained
at 0.1%."
The Company also announced that its Board of Directors declared a dividend of $0.19 per share on its common stock for the 2007 first quarter, an increase of 19% from $0.16 a year ago. The dividend is payable on June 1, 2007 to shareholders of record on May 18, 2007. Since the Company's initial public offering in 1996, the Company has paid out over $108,000,000 in dividends, or $7.20 per share.
Medallion Financial Corp. is a specialty finance company with a leading position in the origination and servicing of loans financing the purchase of taxicab medallions and related assets. The Company also originates and services other commercial in targeted niche industries and its wholly owned portfolio company Medallion Bank also originates and services consumer loans. The Company and its subsidiaries have lent over $2.6 billion.
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales, net investment income, earnings, and growth. Medallion's actual results may differ significantly from the results discussed in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those factors discussed under the heading "Risk Factors," in Medallion's 2006 Annual Report on Form 10-K.
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